Colombo stock market ends week with losses

The Colombo stock market yesterday ended the week with losses, a complete U-turn after the previous saw sharp gains. 

During the week the benchmark ASPI lost 2.3% and the active S&P SL20 lost 3.4%. In the previous week the ASPI and the S&P SL20 gained 2% and 2.6% respectively.

Turnover this week averaged Rs. 1.95 billion, down from Rs. 2.91 billion in the previous week.

Yesterday the S&P SL20 declined by 0.75% and the ASPI by 0.4% with turnover amounting to Rs. 1.47 billion involving 113 million shares.

Asia Securities said following an early decline, the market recovered yesterday in the second half of the session with investors adopting a “wait-and-see” approach amidst escalating tensions in the Middle East. 

The ASPI dropped below the 11,700 levels to reach an intra-day low of 11,693 (-105 points) at market open. However, the indices picked up to 11,750 (-48 points) and remained range-bound between 11,730-11,760 for the remainder of the session. 

LOLC group stocks LOFC (+4.9%) and BIL (+1.8%) led the recovery in the market while SCAP (+2.9%), COCR (+1.5%), and AEL (+1.3%) provided further support to the index. On the flipside, CALT (-1.7%), HNBN (-2.1%), and DFCC (-1.9%) closed in red. The breadth of the market was negative with 54 price gainers and 124 decliners.

The shares of SHL commenced trading today after a four-month hiatus. The stock closed with a gain of 24.4%. 

Market turnover yesterday was led by LOFC (Rs. 170 million), BIL (Rs. 72 million), and CALT (Rs. 70 million). 

Foreigners recorded a net inflow of Rs. 5.1 million. Net foreign buying topped in JKH at Rs. 4.1 million and selling topped in SHL.N at Rs. 11.1 million.

First Capital said the Bourse experienced subdued sentiment throughout the trading day, largely influenced by profit-taking among retail investors and mixed feelings regarding external uncertainties. 

Consequently, the ASPI declined to a two-week low to 11,753, shedding 45 points after recovering from an intraday low of 11,691. Index heavyweight counters such as MELS and LIOC, along with Banking sector counters like HNB, COMB, and DFCC, exerted negative pressure on the index. 

The Diversified Financials sector led turnover at 25%, surpassing the Banking sector for the 2nd consecutive day, which contributed 18%, while the Capital Goods sector contributed 17%.

NDB Securities said high net worth and institutional investor participation was noted in LOLC Finance, Browns Investments and Capital Alliance. Mixed interest was observed in Hatton National Bank, Lanka Milk Foods and CIC Holdings whilst retail interest was noted in Waskaduwa Beach Resort, Softlogic Capital and Softlogic Holdings. 

Diversified Financials sector was the top contributor to the market turnover (due to LOLC Finance and Capital Alliance) whilst the sector index lost 0.42%. The share price of LOLC Finance increased by 30 cents to Rs. 6.40. The share price of Capital Alliance moved down by Rs. 1.10 to Rs. 64.80.

The Banking sector was the second highest contributor to the market turnover (due to Hatton National Bank) whilst the sector index decreased by 1.06%. The share price of Hatton National Bank recorded a loss of Rs. 4 to Rs. 188.50.

Browns Investments and Softlogic Holdings were also included amongst the top turnover contributors. The share price of Browns Investments gained 10 cents to Rs. 5.60. The share price of Softlogic Holdings appreciated by Rs. 2.20 to Rs. 11.20.